Citation Note
Based on Field research; 10 pages.
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Objective
The case has three main focal points: 1. The implications of internationalization on business management. 2. The importance of investigating the feasibility of a market when considering entry. 3. Analyzing and troubleshooting issues related to internationalization.
description
When exporting his restaurant business model to another country, Manual Costa faced several problems, such as employee theft and disappointing profits. Which options best suits his resolve to fix these problems?
Abstract
This case focuses on the expansion of the Sr. Frango da Guia (SFG) restaurants from Portugal to Brazil. After opening a number of successful restaurants in Portugal, Manuel Costa exported his business model to Brazil and opened two restaurants there. Soon he faced employee theft and disappointing profits in his internationalization efforts. Costa had a number of options to resolve the problems: franchising, hiring Portuguese managers for his Brazilian restaurants, or partnering with a Brazilian business. In addition, conducting market research could also resolve questions about customer preference and effective marketing. All these options, however, would require further investment, which might not pay off. Costa faced a choice between investing further in his Brazilian restaurants or exiting the market altogether.
The case addresses important factors faced by start-ups’ internationalization attempts, including franchising, long-distance firm management, the economic circumstances of a foreign country, and the impact of local stakeholders and cultures.
usage
As a combination of a start-up and the desire for internationalization, this case provides material for understanding important factors, like as the impact of local stakeholders and culture, on a firm’s success.
